Game
Let’s explore Europe. Try this quiz: here
Let’s explore Europe. Try this quiz: here
Notes
SS6E6: The student will analyze the benefits of and barriers to voluntary trade in Europe.
Trade is an important part of any country's economy. It allows that country to use its natural resources and exchange them for products and resources that country does not have. There are, however, physical and economic barriers to trade. Also, it is important to remember that not all countries use the same currency, and so there must be a way to exchange two different currencies.
Barriers to Trade
Physical barriers: geographical features that prevent people from easily reaching another location. Land-locked countries, countries that have no ocean coastline, have difficulty trading because many important goods are shipped by way of the world's oceans. For example, Bolivia is a land-locked country, making trade with any country not sharing a border extremely difficult.
Economic barriers: economic features that prevent trade between two locations. In the Western Hemisphere, trade blocks are used to combat tariffs.
International Trade and Economies
In the past, countries like England, France, and the Netherlands used their empires to gain access to trade routes and specific goods. For example, from the 1800s until 1947, India was part of the British Empire. As a result, the British East India Company established trade between England and India. Tea, spices, and other goods were imported to England, and England ruled India as a colony. England's economy was strengthened by the trade between England and India. Today, England still has one of the strongest economies in the world.
Natural resources are an important part of trade. England is surrounded by water, and so it is one of the leading fishing nations in the world. England's fishing industry is an important part of the country's economy and has been for centuries. Countries in the Mediterranean basin, including Spain, Portugal, Italy, Greece, Turkey, Tunisia and Morocco, produce 90% of the world's olive oil supply. This is because the climate in the Mediterranean basin is the best for growing olive trees. Olive trees also are used as decorative plants in landscaping and to produce olives for eating. These natural resources provide goods that are important for trade and the economies of many countries.
International Currencies
Countries all over the world have different currencies, or monetary units. How can these countries trade with each other if they do not have the same currency? The answer is exchange rates. An exchange rate is how much one currency is worth when compared to another. For example, one English pound is worth $2.045 U.S. dollars and 1.484 euro. Financial analysts decide what the exchange rate is, and these rates can go up or down depending on the two nations' economies.
Member nations of the European Union have the option of making the euro their national currency. Thirteen countries have switched over to the euro. Some countries have done this in the hopes of eventually stabilizing their economies. A common currency across countries makes trade and travel easier, because it is not necessary to switch currencies when moving from one country to another. It also makes it easier for investors and companies to do business in multiple countries because they all have the same currency. France, Italy, and Greece currently use the euro. England has chosen not to use the euro and instead uses the pound (or pound sterling). This is because the pound is worth more and is more stable than the euro. The United Kingdom is one of the most stable economies in the world, and many people in the UK feel that it would harm the economy if they switched to the euro. Russia's monetary unit is the ruble.
Trade within the European Union benefits from the use of the euro. Because England does not use the euro, trade with England is much more difficult for countries using the euro. Currency has to be converted, which costs money, and the values of the currencies change. Citizens in the EU also benefit from a high level of competition because there are few trade barriers between countries in the EU. Many businesses compete for the same customers, so business must charge fair prices. The large number of businesses also allows customers to have many choices when they make purchases.
SS6E6: The student will analyze the benefits of and barriers to voluntary trade in Europe.
Trade is an important part of any country's economy. It allows that country to use its natural resources and exchange them for products and resources that country does not have. There are, however, physical and economic barriers to trade. Also, it is important to remember that not all countries use the same currency, and so there must be a way to exchange two different currencies.
Barriers to Trade
Physical barriers: geographical features that prevent people from easily reaching another location. Land-locked countries, countries that have no ocean coastline, have difficulty trading because many important goods are shipped by way of the world's oceans. For example, Bolivia is a land-locked country, making trade with any country not sharing a border extremely difficult.
Economic barriers: economic features that prevent trade between two locations. In the Western Hemisphere, trade blocks are used to combat tariffs.
- Tariff: a tax on important goods. Tariffs make trade more difficult because they raise the price of goods imported between countries.
- Quota: a limit on the quantity of a given product that can be imported from a particular country.
- Embargo: the act of not allowing trade ships to enter or leave a country's ports. A country that declares an embargo can stop all trade with other countries. More frequently, an embargo can be used by one country or group against another specific country or group. When this happens, it blocks all trade between those two groups. Because the United States disapproves of Cuba’s Communist rule, the U.S. has had a trade embargo against Cuba since 1962
International Trade and Economies
In the past, countries like England, France, and the Netherlands used their empires to gain access to trade routes and specific goods. For example, from the 1800s until 1947, India was part of the British Empire. As a result, the British East India Company established trade between England and India. Tea, spices, and other goods were imported to England, and England ruled India as a colony. England's economy was strengthened by the trade between England and India. Today, England still has one of the strongest economies in the world.
Natural resources are an important part of trade. England is surrounded by water, and so it is one of the leading fishing nations in the world. England's fishing industry is an important part of the country's economy and has been for centuries. Countries in the Mediterranean basin, including Spain, Portugal, Italy, Greece, Turkey, Tunisia and Morocco, produce 90% of the world's olive oil supply. This is because the climate in the Mediterranean basin is the best for growing olive trees. Olive trees also are used as decorative plants in landscaping and to produce olives for eating. These natural resources provide goods that are important for trade and the economies of many countries.
International Currencies
Countries all over the world have different currencies, or monetary units. How can these countries trade with each other if they do not have the same currency? The answer is exchange rates. An exchange rate is how much one currency is worth when compared to another. For example, one English pound is worth $2.045 U.S. dollars and 1.484 euro. Financial analysts decide what the exchange rate is, and these rates can go up or down depending on the two nations' economies.
Member nations of the European Union have the option of making the euro their national currency. Thirteen countries have switched over to the euro. Some countries have done this in the hopes of eventually stabilizing their economies. A common currency across countries makes trade and travel easier, because it is not necessary to switch currencies when moving from one country to another. It also makes it easier for investors and companies to do business in multiple countries because they all have the same currency. France, Italy, and Greece currently use the euro. England has chosen not to use the euro and instead uses the pound (or pound sterling). This is because the pound is worth more and is more stable than the euro. The United Kingdom is one of the most stable economies in the world, and many people in the UK feel that it would harm the economy if they switched to the euro. Russia's monetary unit is the ruble.
Trade within the European Union benefits from the use of the euro. Because England does not use the euro, trade with England is much more difficult for countries using the euro. Currency has to be converted, which costs money, and the values of the currencies change. Citizens in the EU also benefit from a high level of competition because there are few trade barriers between countries in the EU. Many businesses compete for the same customers, so business must charge fair prices. The large number of businesses also allows customers to have many choices when they make purchases.
SS6E7: The student will describe factors that influence economic growth and examine their presence or absence in Europe.
The Four Types of Economic Growth
There are three kinds of resources: human resources, capital goods, and natural resources. It is very important for the human resources of a company or country to have a high human capital. These resources help to make goods and services. An entrepreneur is a person that takes a risk to start a new business or put a new idea to use.
The Four Types of Economic Growth
There are three kinds of resources: human resources, capital goods, and natural resources. It is very important for the human resources of a company or country to have a high human capital. These resources help to make goods and services. An entrepreneur is a person that takes a risk to start a new business or put a new idea to use.
- Human Capital: the technical knowledge and skills that a laborer (human resource) has. Some companies and countries invest in more education and training for their workers. Health care is also important, and some companies or countries provide health care, usually at a fee, for the worker. People who do not have access to education or health care can be put at a disadvantage when they apply for jobs. Lowering the unemployment rate improves the living conditions for all people in a country.
- Capital Goods: resources that are human-made materials used to create a product. Examples of capital goods include factories, machinery, tools, and new technology. Capital goods can help increase production for a business or country.
- Natural Resources: resources that are supplied by nature, such as land, air, water, minerals, and time. Companies that learn to work with the surrounding natural resources, like air and water, are better for the environment. Companies that learn to manage time well can be more productive in the long run.
- Entrepreneur: a person who organizes the use of resources to produce goods or services. He or she thinks of new ideas and is willing to take risks to start a business. Entrepreneurs are decision-makers, and most are interesting in making a profit.
- Gross Domestic Product (GDP): the total market value of goods and services produced in a certain country during a specific period of time. Investment in human capital and capital goods can help a country's GDP.
europe_economic_factors.pptx | |
File Size: | 4442 kb |
File Type: | pptx |
United Kingdom
http://www.heritage.org/index/country/unitedkingdom
Russia
http://www.heritage.org/index/country/russia
Germany
http://www.heritage.org/index/country/germany
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